- New relationship with insured mortgage aggregator, paving the way for
an initial sale of $98 million in mortgages
- Agreement with mortgage insurer for immediate coverage of a portion
of the Company's previously originated mortgage portfolio
- Company believes agreements recognize its strong mortgage
TORONTO, Feb. 4 /CNW/ - Xceed Mortgage Corporation (TSX: XMC), a leading
non-traditional mortgage lender, today announced that it has concluded a new
agreement to sell mortgages to a conduit that is an aggregator of insured
mortgages destined for sale to the Canada Mortgage Bond Program. As part of
this agreement, Xceed completed an initial sale of $98 million in insured
mortgages to this conduit.
Xceed concurrently announced that it has also completed an agreement with
a leading residential mortgage insurer to immediately provide insurance
coverage on a portion of its previously originated mortgage portfolio.
"These agreements are significant and exciting achievements for Xceed.
They provide us with additional liquidity to support origination of profitable
insured mortgage business," said Ivan Wahl, Chairman and Chief Executive
Officer. We believe that our ability to obtain the insurance and conclude this
first sale are strong endorsement that are indicative of our partners'
recognition of Xceed's strong underwriting fundamentals.
"The initiative to arrange insurance coverage is consistent with plans,
that we previously disclosed, to strengthen our business by expanding our use
of insurance. Xceed expects to be able to originate up to $250 million per
quarter of residential mortgages that are insured by CMHC, Genworth or PMI
"In the fall of 2006," he continued, "we were able to obtain Approved
Lender status from the Canadian Mortgage and Housing Corporation and we
subsequently added several other Canadian mortgage insurers. These agreements
are providing Xceed with the ability to insure newly originated mortgages that
can eventually be sold to the Canada Mortgage Bond Program.
Xceed is one of a new breed of alternative residential mortgage lenders
in Canada. Xceed helps Canadians fulfill their aspirations of home ownership.
Its borrowers range from those who have solid credit and income histories, but
have not managed to save a down payment, to those who have gone through
periods with limited and specific credit difficulties but have since recovered
and repaired their credit. A growing proportion of Xceed's applicants are
renters, self-employed entrepreneurs, and recent immigrants to Canada, who may
otherwise not conform to major banks' electronic credit-scoring criteria.
By meeting the needs of Canadians for alternative financing, Xceed
Mortgage Corporation has grown to become one of the largest non-traditional
residential mortgage financing companies in Canada. Xceed's shares are traded
on the Toronto Stock Exchange (TSX: XMC). To find out more about Xceed
Mortgage Corporation, visit our website at www.xceedmortgage.com.
Forward-looking statements in this document are based on current
expectations that are subject to significant risks and uncertainties. Actual
results might differ materially due to various factors such as the competitive
nature of the mortgage industry, the ability of Xceed to continue to execute
its growth and development strategy, and the reliance of Xceed on key
personnel. Xceed assumes no obligation to update these forward-looking
statements, or to update the reasons why actual results could differ from
those reflected in these. Additional information identifying risks and
uncertainties is contained in Xceed's regulatory filings available on its
website and at www.sedar.com.
For further information:
For further information: Investor and Media Relations: Richard Wertheim,
Wertheim + Company Inc., (416) 594-1600 or (416) 518-8479 (cell),